Gold Price Remains Votile Amid Geopolitical Tensions. What should be your portfolio diversification strategy?

Gold Rate Today: The Precious Metal Gold Saw a Marginal Downward TREND on Tuesday AMID A Rise in the Us Dollar and Profit Taking after a sharp surge seen in the last trading Session.

However, Donald Trump’s Tariff War With China and the European Union, Along with Geopolitical Instability Amid The Escalating Russia-ukraine war, capped the downside. Investors are also eyeing the US federal reserve interest announs, slaged for late this month.

On Multi Commodity Exchange (MCX), August Gold Futures Declined by 308, or 0.31 per cent, to trade at 97,645 per 10 grams.

Gold pris in the International Market also experienced a slight decline, pulling back from nearly a four-wait high. Spot Gold Slipped 0.3% to $ 3,369.98 per oaunce, after Reaching Its Highest Point Since May 8.

Us gold futures remained unchanged at $ 3,390. In the previous trading session, gold Had surgged Around 2.7%, Marking Its Strongest One-Day Increase in more than three weeks.

Gold as a portfolio diversifier

Gold as an asset has been a good diversifier in any portfolio for decades, according to market experts.

According to the brokerage firm angel one, gold demand and supply are inharent factors defining the Volativity in the Asset. The supply has been consistent at more than 4,000 tons every year for more than the past decade.

Jewelery contributes more than 50% of the overall demand for gold history, and this trend has been similar similar for more than a decade. Central banks have also also been increasing their interest in the yellow metal since Covid-19.

Is it the right time to investment in gold?

Prathamesh Mallya, DVP-Research, Non -gri Commodities and Currencies, Angel One, Believe The Ongoing Trend in Gold Pries will likely continue in 2025, boosting the yellow means in the system Half of 2025.

Mallya further said that investors should wait for a meaningful correction towards 85,000/10 GMS for Accumulation and recommends allocating at least 10 per cent of their portfolio allocation towards Gold for Better Diversification.

“Gold Pries have had a good a good run in the past one and a half years. For, for investors with a long-term percent, they should accumulate on everything on every double Returns, “He said.

Disclaimer: This story is for educational purposes only. The views and recommendations about individual analysts or broking companies, not mint. We Advise Investors to Check With Certified Experts Before Making Any Investments Decisions.